State of Illinois
2017 and 2018


Introduced 2/9/2017, by Sen. Ira I. Silverstein


215 ILCS 5/143a-2  from Ch. 73, par. 755a-2

    Amends the Illinois Insurance Code. Provides that no policy which provides underinsured motor vehicle coverage shall be renewed, delivered, or issued for delivery unless it provides that any dispute with respect to the coverage and the amount of damages shall be submitted for arbitration to the American Arbitration Association and be subject to its rules for the conduct of arbitration hearings as to all matters except medical opinions. Provides the rules for arbitration in which a claimant is only seeking monetary damages up to certain limits. Provides rules for proposing to use the written opinion or testimony of an expert or opinion witness. Provides rules for subpoenaing the author or maker of a document. Provides that certain provisions in the Code of Civil Procedure shall be applicable to arbitration hearings.

LRB100 09627 SMS 19796 b





SB1646LRB100 09627 SMS 19796 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 143a-2 as follows:
6    (215 ILCS 5/143a-2)  (from Ch. 73, par. 755a-2)
7    Sec. 143a-2. (1) Additional uninsured motor vehicle
8coverage. No policy insuring against loss resulting from
9liability imposed by law for bodily injury or death suffered by
10any person arising out of the ownership, maintenance or use of
11a motor vehicle shall be renewed or delivered or issued for
12delivery in this State with respect to any motor vehicle
13designed for use on public highways and required to be
14registered in this State unless uninsured motorist coverage as
15required in Section 143a of this Code is included in an amount
16equal to the insured's bodily injury liability limits unless
17specifically rejected by the insured as provided in paragraph
18(2) of this Section. Each insurance company providing the
19coverage must provide applicants with a brief description of
20the coverage and advise them of their right to reject the
21coverage in excess of the limits set forth in Section 7-203 of
22The Illinois Vehicle Code. The provisions of this amendatory
23Act of 1990 apply to policies of insurance applied for after



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1June 30, 1991.
2    (2) Right of rejection of additional uninsured motorist
3coverage. Any named insured or applicant may reject additional
4uninsured motorist coverage in excess of the limits set forth
5in Section 7-203 of the Illinois Vehicle Code by making a
6written request for limits of uninsured motorist coverage which
7are less than bodily injury liability limits or a written
8rejection of limits in excess of those required by law. This
9election or rejection shall be binding on all persons insured
10under the policy. In those cases where the insured has elected
11to purchase limits of uninsured motorist coverage which are
12less than bodily injury liability limits or to reject limits in
13excess of those required by law, the insurer need not provide
14in any renewal, reinstatement, reissuance, substitute,
15amended, replacement or supplementary policy, coverage in
16excess of that elected by the insured in connection with a
17policy previously issued to such insured by the same insurer
18unless the insured subsequently makes a written request for
19such coverage.
20    (3) The original document indicating the applicant's
21selection of uninsured motorist coverage limits shall
22constitute sufficient evidence of the applicant's selection of
23uninsured motorist coverage limits. For purposes of this
24Section any reproduction of the document by means of
25photograph, photostat, microfiche, computerized optical
26imaging process, or other similar process or means of



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1reproduction shall be deemed the equivalent of the original
3    (4) For the purpose of this Code the term "underinsured
4motor vehicle" means a motor vehicle whose ownership,
5maintenance or use has resulted in bodily injury or death of
6the insured, as defined in the policy, and for which the sum of
7the limits of liability under all bodily injury liability
8insurance policies or under bonds or other security required to
9be maintained under Illinois law applicable to the driver or to
10the person or organization legally responsible for such vehicle
11and applicable to the vehicle, is less than the limits for
12underinsured coverage provided the insured as defined in the
13policy at the time of the accident. The limits of liability for
14an insurer providing underinsured motorist coverage shall be
15the limits of such coverage, less those amounts actually
16recovered under the applicable bodily injury insurance
17policies, bonds or other security maintained on the
18underinsured motor vehicle.
19     On or after July 1, 1983, no policy insuring against loss
20resulting from liability imposed by law for bodily injury or
21death suffered by any person arising out of the ownership,
22maintenance or use of a motor vehicle shall be renewed or
23delivered or issued for delivery in this State with respect to
24any motor vehicle designed for use on public highways and
25required to be registered in this State unless underinsured
26motorist coverage is included in such policy in an amount equal



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1to the total amount of uninsured motorist coverage provided in
2that policy where such uninsured motorist coverage exceeds the
3limits set forth in Section 7-203 of the Illinois Vehicle Code.
4    The changes made to this subsection (4) by this amendatory
5Act of the 93rd General Assembly apply to policies issued or
6renewed on or after December 1, 2004.
7    (5) Scope. Nothing herein shall prohibit an insurer from
8setting forth policy terms and conditions which provide that if
9the insured has coverage available under this Section under
10more than one policy or provision of coverage, any recovery or
11benefits may be equal to, but may not exceed, the higher of the
12applicable limits of the respective coverage, and the limits of
13liability under this Section shall not be increased because of
14multiple motor vehicles covered under the same policy of
15insurance. Insurers providing liability coverage on an excess
16or umbrella basis are neither required to provide, nor are they
17prohibited from offering or making available coverages
18conforming to this Section on a supplemental basis.
19Notwithstanding the provisions of this Section, an insurer
20shall not be prohibited from solely providing a combination of
21uninsured and underinsured motorist coverages where the limits
22of liability under each coverage is in the same amount.
23    (6) Subrogation against underinsured motorists. No insurer
24shall exercise any right of subrogation under a policy
25providing additional uninsured motorist coverage against an
26underinsured motorist where the insurer has been provided with



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1written notice in advance of a settlement between its insured
2and the underinsured motorist and the insurer fails to advance
3a payment to the insured, in an amount equal to the tentative
4settlement, within 30 days following receipt of such notice.
5    (7) A policy which provides underinsured motor vehicle
6coverage may include a clause which denies payment until the
7limits of liability or portion thereof under all bodily injury
8liability insurance policies applicable to the underinsured
9motor vehicle and its operators have been partially or fully
10exhausted by payment of judgment or settlement. A judgment or
11settlement of the bodily injury claim in an amount less than
12the limits of liability of the bodily injury coverages
13applicable to the claim shall not preclude the claimant from
14making an underinsured motorist claim against the underinsured
15motorist coverage. Any such provision in a policy of insurance
16shall be inapplicable if the insured, or the legal
17representative of the insured, and the insurer providing
18underinsured motor vehicle coverage agree that the insured has
19suffered bodily injury or death as the result of the negligent
20operation, maintenance, or use of an underinsured motor vehicle
21and, without arbitration, agree also on the amount of damages
22that the insured is legally entitled to collect. The maximum
23amount payable pursuant to such an underinsured motor vehicle
24insurance settlement agreement shall not exceed the amount by
25which the limits of the underinsured motorist coverage exceed
26the limits of the bodily injury liability insurance of the



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1owner or operator of the underinsured motor vehicle. Any such
2agreement shall be final as to the amount due and shall be
3binding upon both the insured and the underinsured motorist
4insurer regardless of the amount of any judgment, or any
5settlement reached between any insured and the person or
6persons responsible for the accident. No such settlement
7agreement shall be concluded unless: (i) the insured has
8complied with all other applicable policy terms and conditions;
9and (ii) before the conclusion of the settlement agreement, the
10insured has filed suit against the underinsured motor vehicle
11owner or operator and has not abandoned the suit, or settled
12the suit without preserving the rights of the insurer providing
13underinsured motor vehicle coverage in the manner described in
14paragraph (6) of this Section.
15    (8) No policy which provides underinsured motor vehicle
16coverage shall be renewed, delivered, or issued for delivery in
17this State unless it is provided therein that any dispute with
18respect to the coverage and the amount of damages shall be
19submitted for arbitration to the American Arbitration
20Association and be subject to its rules for the conduct of
21arbitration hearings as to all matters except medical opinions.
22As to medical opinions, if the amount of damages being sought
23is equal to or less than the amount provided for in Section
247-203 of the Illinois Vehicle Code, then the current American
25Arbitration Association Rules shall apply. If the amount being
26sought in an American Arbitration Association case exceeds that



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1amount as set forth in Section 7-203 of the Illinois Vehicle
2Code, then the Rules of Evidence that apply in the circuit
3court for placing medical opinions into evidence shall govern.
4Alternatively, disputes with respect to damages and the
5coverage shall be determined in the following manner: Upon the
6insured requesting arbitration, each party to the dispute shall
7select an arbitrator and the 2 arbitrators so named shall
8select a third arbitrator. If such arbitrators are not selected
9within 45 days from such request, either party may request that
10the arbitration be submitted to the American Arbitration
11Association. Any decision made by the arbitrators shall be
12binding for the amount of damages not exceeding $75,000 for
13bodily injury to or death of any one person, $150,000 for
14bodily injury to or death of 2 or more persons in any one motor
15vehicle accident, or the corresponding policy limits for bodily
16injury or death, whichever is less. All 3-person arbitration
17cases proceeding in accordance with any underinsured motorist
18coverage conducted in this State in which the claimant is only
19seeking monetary damages up to the limits set forth in Section
207-203 of the Illinois Vehicle Code shall be subject to the
21following rules:
22        (A) If at least 60 days' written notice of the
23    intention to offer the following documents in evidence is
24    given to every other party, accompanied by a copy of the
25    document, a party may offer in evidence, without foundation
26    or other proof:



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1            (1) bills, records, and reports of hospitals,
2        doctors, dentists, registered nurses, licensed
3        practical nurses, physical therapists, and other
4        healthcare providers;
5            (2) bills for drugs, medical appliances, and
6        prostheses;
7            (3) property repair bills or estimates, when
8        identified and itemized setting forth the charges for
9        labor and material used or proposed for use in the
10        repair of the property;
11            (4) a report of the rate of earnings and time lost
12        from work or lost compensation prepared by an employer;
13            (5) the written opinion of an opinion witness, the
14        deposition of a witness, and the statement of a witness
15        that the witness would be allowed to express if
16        testifying in person, if the opinion or statement is
17        made by affidavit or by certification as provided in
18        Section 1-109 of the Code of Civil Procedure; and
19            (6) any other document not specifically covered by
20        any of the foregoing provisions that is otherwise
21        admissible under the rules of evidence.
22        Any party receiving a notice under this paragraph (A)
23    may apply to the arbitrator or panel of arbitrators, as the
24    case may be, for the issuance of a subpoena directed to the
25    author or maker or custodian of the document that is the
26    subject of the notice, requiring the person subpoenaed to



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1    produce copies of any additional documents as may be
2    related to the subject matter of the document that is the
3    subject of the notice. Any such subpoena shall be issued in
4    substantially similar form and served by notice as provided
5    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
6    shall be returnable not less than 5 days before the
7    arbitration hearing.
8        (B) Notwithstanding the provisions of Supreme Court
9    Rule 213(g), a party who proposes to use a written opinion
10    of an expert or opinion witness or the testimony of an
11    expert or opinion witness at the hearing may do so provided
12    a written notice of that intention is given to every other
13    party not less than 60 days prior to the date of hearing,
14    accompanied by a statement containing the identity of the
15    witness, his or her qualifications, the subject matter, the
16    basis of the witness's conclusions, and his or her opinion.
17        (C) Any other party may subpoena the author or maker of
18    a document admissible under this subsection, at that
19    party's expense, and examine the author or maker as if
20    under cross-examination. The provisions of Section 2-1101
21    of the Code of Civil Procedure shall be applicable to
22    arbitration hearings, and it shall be the duty of a party
23    requesting the subpoena to modify the form to show that the
24    appearance is set before an arbitration panel and to give
25    the time and place set for the hearing.
26        (D) The provisions of Section 2-1102 of the Code of



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1    Civil Procedure shall be applicable to arbitration
2    hearings under this subsection.
3(Source: P.A. 93-762, eff. 7-16-04.)